Making Tax Digital for Landlords: Everything You Need to Know Before April 2026

If you earn income from rental property, Making Tax Digital is heading your way. From 6 April 2026, landlords with qualifying gross income over £50,000 must keep digital records and submit quarterly updates to HMRC.

Yet landlords are consistently the most confused group when it comes to MTD. Many don’t realise it applies to property income at all. This guide covers everything landlords need to know..

Does MTD Apply to You as a Landlord?

MTD for Income Tax applies if your combined gross income from self-employment and/or property exceeded £50,000 on your 2024/25 Self Assessment.

The key word is “combined.” If you’re a landlord who also has a sole trade, both income streams count toward the threshold.

Example 1:

A landlord with £55,000 in rental income and no self-employment income. Qualifying income = £55,000. In scope.

Example 2:

A landlord with £30,000 in rental income who also earns £25,000 as a freelance consultant. Combined qualifying income = £55,000. In scope.

Example 3:

A landlord with £40,000 in rental income and no other qualifying income. Below the £50,000 threshold. Not in scope for Cohort 1, but will be from April 2027 if income exceeds £30,000.

Remember: this is gross income before expenses. Mortgage interest, repairs, management fees, and other deductions do not reduce your qualifying income for threshold purposes.

How Quarterly Reporting Works for Landlords

Under MTD, you’ll submit quarterly updates summarising your property income and expenses for each three-month period. The standard quarterly deadlines are:

Q1: 6 April – 5 July (due 7 August)

Q2: 6 July – 5 October (due 7 November)

Q3: 6 October – 5 January (due 7 February)

Q4: 6 January – 5 April (due 7 May)

Multiple Income Sources = Multiple Updates

This is the part that catches most landlords off guard. Under MTD, each business or income source requires its own quarterly update.

If you’re a sole trader who also has a rental property, you’ll need to submit two updates per quarter, one for your sole trade and one for your property income. That’s eight quarterly updates per year, plus your End of Period Statement and final declaration.

If you have UK property income AND foreign property income, those are treated as separate income sources and each needs its own quarterly update.

What Records Do Landlords Need to Keep Digitally?

Under MTD, you must keep digital records of all transactions relating to your rental income. At a minimum, this includes:

→ Rental income received (dates, amounts, and tenant details)

→ Allowable expenses (repairs, maintenance, insurance, letting agent fees, mortgage interest)

→ Capital expenditure where relevant

→ Any adjustments (e.g. private use, capital allowances)

These records must be kept in HMRC-recognised software or in a spreadsheet linked to HMRC via bridging software.

Choosing the Right Software as a Landlord

Landlords have specific needs: tracking multiple properties, distinguishing between UK and overseas income, handling mortgage interest relief calculations, and managing tenant turnover.

When choosing software, look for:

→ Support for UK property, foreign property, and furnished holiday lettings

→ Multi-property tracking with individual income and expense breakdowns

→ Automatic quarterly summaries for HMRC submission

→ Integration with your existing bookkeeping method

Once registered and set up, authorise your software to communicate with HMRC on your behalf. This completes the digital link.

The Soft Landing for Landlords

HMRC has confirmed there will be no penalty points for late quarterly updates during the first year (2026/27). However, you are still expected to register and keep digital records from 6 April. The soft landing is breathing room to get your rhythm right, not a reason to delay.

→ Get registered today